Define the Three Forms of Market Efficiency

question 2

Essay

Define the three forms of market efficiency.

---

Definitions:

Externalities

Economic side effects or consequences that affect uninvolved third parties; can be either positive or negative.

Groschens

A historic European coin of small denomination, particularly used in Austria and Germany.

Air Pollution

The presence in or introduction into the air of a substance which has harmful or poisonous effects.

Nash Equilibrium

A concept in game theory where each player's strategy is optimal, given the strategies of all other players, leading to a situation where no player can benefit by unilaterally changing their strategy.